Amazon profit plunges on acquisition cost

Jul 27, 2012
Online retail titan Amazon said its profit in the past quarter plunged 96 percent, with the cost of buying a robotics firm hurting already weak results.

Online retail titan Amazon said its profit in the past quarter plunged 96 percent, with the cost of buying a robotics firm hurting already weak results.

Amazon said its profit fell to $7 million, as it accounted for the costs of acquiring Kiva Systems earlier this year.

But the results were disappointing even excluding special items, with profit amounting to one cent per share, below forecasts of two cents.

Revenues also came in shy of estimates at $12.83 billion in the quarter, an increase of 29 percent.

For the current quarter, Amazon said it expects revenues of between $12.9 and $14.3 billion.

The company made no comment on new product launches, despite widespread reports that it is developing an upgraded Kindle Fire, its , or even its own mobile phone.

Amazon shares rose one percent at $222.22 in after-hours trade following the results.

Founder and Jeff Bezos said Amazon was continuing to invest in media -- electronic content such as streaming video, and music.

"We've also added 18,000 movies and TV episodes available for unlimited streaming," he said.

"And we've added the Kindle Owners' Lending Library -- borrow 170,000 books for free with no due dates -- it even includes all seven Harry Potter books."

Amazon earlier this year acquired Kiva, a robotics firm expected to help in managing its warehouses and supply chain, for $775 million.

Explore further: Uber driver found guilty in Belgium crackdown

Related Stories

Amazon.com stock soars as earnings trump forecasts

Apr 26, 2012

Online retail titan Amazon.com saw its stock price soar after the release of quarterly earnings figures that trounced forecasts, with sales skyrocketing in the first three months of the year.

Kindle Fire helps Amazon beat 1Q estimates

Apr 27, 2012

(AP) -- Amazon.com Inc. posted first-quarter profits Thursday that blew by analysts' estimates and boosted the company's stock in extended trading. The online commerce giant said its Kindle Fire tablet computer was its best-selling ...

Amazon 2Q profit falls but results beat Street

Jul 26, 2011

(AP) -- Amazon.com Inc. said Tuesday that its second-quarter profit fell despite a 51 percent jump in revenue as the leading online retailer spent heavily to expand its business.

Recommended for you

Uber driver found guilty in Belgium crackdown

4 hours ago

An Uber driver in Belgium was found guilty of breaking taxi laws on Monday, in the first case to land in a Brussels court after dozens of drivers were caught by police posing as clients of the banned service.

Comcast now has more Internet than cable customers

May 04, 2015

Just before its $45 billion deal with Time Warner Cable collapsed over regulators' fears about a giant cable company's control over the Web, Comcast was racking up more Internet customers.

Google embeds engineers as professors

May 03, 2015

Howard University freshman Alanna Walton knew something was different about the professor teaching her introduction to computer science course.

Uber office raided in southern China: report

May 01, 2015

Taxi app Uber's office in the southern city of Guangzhou has been raided by authorities, a report said Friday, in an apparent crackdown on the Internet ride-sharing service.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.